The world’s transition towards digitization calls for organizations to replace legacy security systems with modern authentication solutions. While passwords were meant to protect users’ accounts against cybercriminals, hackers are now using more sophisticated techniques to hack these and breach the system successfully. Passwords are knowledge-based authentication mechanisms that only enable access but do not verify whether the individual using the platform is the actual account owner.
Organizations seeking to replace passwords to reduce cybersecurity risks can leverage passwordless login credentials compliant to modern security standards such as FIDO 2.0 standards.
The FIDO (Fast Identity Online) Alliance aims to reduce the world’s over-reliance on passwords and replace them with more robust authentication credentials that effectively prevent cybersecurity risks and maintain convenience for a seamless user experience.
Enterprises can invest in FIDO2 authentication solutions for passwordless login. FIDO 2.0 enables them to harness mobile technology for a more streamlined and convenient authentication. Its cryptographic login credentials bind a user’s enrolled device to the relying party service. This process of securing the cryptographic credentials to a defined device provides increased certainty that only that device can access a user account and a network.
FIDO login credentials provide stronger authentication for account users. These can only be unlocked using a second factor or on-device authentication, such as a PIN code, a swipe pattern, or biometric authentication.
Aside from reducing cybersecurity risks, implementing passwordless authentication solutions provides more benefits to organizations, such as compliance with stringent regulatory policies and reduced password reset expenses.
With robust security provided by passwordless login solutions, institutions in regulated industries, such as the financial sector, can exercise compliance with regulations, such as Anti-Money Laundering (AML) Know-Your-Customer (KYC), and Payment Services Directive 2 (PSD2), at the highest level. Stringent regulatory compliance can help enterprises strengthen their reputation and reduce friction between customers and partners.
Consequently, employing passwordless authentication credentials can allow organizations to save up on helpdesk support and password reset expenses. Password resets can be an expensive burden for enterprises, with the Gartner Group revealing that up to 50% of IT help desk tickets are for password resets. Furthermore, Forrester Research states that companies spend an average of $70 for help desk labor costs for a single password reset.
While several institutions still refuse to let go of passwords as a form of authentication, forward-thinking enterprises adopt emerging trends and practices for a more robust authentication process. Passwordless authentication solutions are ideal password replacements. This infographic from Ipsidy discusses the different benefits enterprises can get from using modern login credentials.